Saudi FAL Holdings buys 34% in Italy's Archimede Solar Energy

Dec 18, 2013 - Italian solar company Archimede Solar Energy (ASE) has signed an agreement for the sale of a 34% stake to Saudi FAL Holdings Arabia Co Ltd through a EUR-20-million (USD 27.5m) capital increase.

The move will allow Archimede Solar Energy to complete its expansion in the Concentrating Solar Power (CSP) sector.

With the support of FAL Holdings, Archimede Solar Energy will better operate in Italy and on the international markets. Mainly Archimede will succeed in completing the strategic programme for penetration on the Saudi market which due to the existence of King Abdullah City for Atomic and Renewable Energy (KA-CARE) is the most important and promising renewables market worldwide, ASE's CEO Federica Angelantoni said.

Under its solar energy development plan, Saudi Arabia seeks to raise solar energy production to 41,000 MW within the next 20 years, of which 25,000 MW of Concentrating Solar Power (CSP) and 16,000 MW of photovoltaic power. The Saudi government targets to meet 25% of the national electricity demand with renewable energy such as solar power. FAL Holding will help ASE to take part in the tenders in Saudi Arabia scheduled for 2014 for the construction of big solar plants.

Archimede Solar Energy is controlled by Gruppo Angelantoni Industrie SpA and has as shareholder Japanese Chiyoda Corporation (TYO:6366).

(EUR 1 = USD 1.375)

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